This year’s favorite market will be back in the spotlight next week. Nvidia’s much-anticipated second-quarter fiscal results are on deck Wednesday, coming at the end of what has been an eventful summer for the stock. After setting record after record in 2024 — topping $140 a share on an intraday basis in June — the artificial intelligence chipmaker started this month with a major pullback. On Aug. 5, Nvidia shares fell to $90.69 a share amid a broader market selloff, as well as reports of delays at its Blackwell brands. Now, they’re up more than 40%, to around $125 a share right now, as traders rushed to buy the dip. NVDA YTD mountain Nvidia Wall Street is bullish heading into Nvidia’s earnings results next week, as it figures any problems with its next-generation AI chips won’t dent the earnings potential of a company that essentially has a monopoly on the market. “Nvidia is in that enviable position of making the best of the best brands,” said Harsh Kumar, senior research analyst at Piper Sandler, who has a buy rating and a $140 price target on the stock. “And Blackwell is even superior to the previous generation – far superior to previous generations.” In fact, CEO Jensen Huang told CNBC’s Jim Cramer in March that the new generation of chips cost it about $10 billion in research and development, a huge barrier to entry for any viable competitor. However, Kumar expects the results may do little to move the stock or the broader market given the high expectations ahead of the results. Nvidia, which previously beat estimates by about $2 billion, may miss a bit of that number as it faces delays, Kumar said. “As long as Nvidia, in its commentary, is able to convince people that business isn’t going to someone else, … the stock should hold,” Kumar said. “It could be flat, but it should definitely have its value.” Regardless, investors may not need much convincing to hold onto their positions in the hot stock, which is up more than 160% this year. Louis Navellier, chairman and founder of Navellier & Associates, said: “I’m all in on Nvidia. I did 1,000% on it years ago. I left. I came back on May 10, 2019, so I’m up 3,000% the second time and I don’t intend to to sell it at all.” to cut interest rates in September — as Chairman Jerome Powell indicated on Friday in his Jackson Hole speech. “It’s time to adjust policy,” Powell said. “The direction of travel is clear and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks.” Economists polled by FactSet expect PCE to rise 0.2% on a monthly basis and 2.6% from previous period. This compares with increases of 0.1% and 2.5% in the previous reading, respectively. A softer inflation print could boost investor confidence that they can turn their attention to the labor market, such as next month’s jobs report, which could determine whether the Fed cuts interest rates by a quarter or half a percentage point in September. The CME FedWatch Tool shows that markets are currently pricing in the likelihood that the key overnight lending rate will fall by one percentage point by the end of the year to a range of 4.25%-4.5%. End of Summer Despite the tumultuous start to August, the major averages are set to end the month on a winning note. As of midday Friday, the S&P 500 and Nasdaq Composite were each up more than 1% month-to-date. The Dow Jones Industrial Average was up 1%. Wall Street expects stocks could move higher from here, though the road between now and the end of the year could be bumpy. Not only are investors about to start a seasonally weak month for stocks, but they are also heading to the US presidential election, as well as ongoing geopolitical risks around the world. “I think the path of least resistance is still up, assuming the Fed continues to cut rates,” said David Miller, chief investment officer at Catalyst Funds. “I think the bigger question is, maybe, is there some other event that comes out of the blue.” Miller said he will be watching how presidential candidates Vice President Kamala Harris and former President Donald Trump outline their economic policies. He also watches how the Russia-Ukraine war could affect the price of oil. Elsewhere, investors will get some data on consumer sentiment in August next Wednesday. Other notable earnings results include tech names Salesforce and CrowdStrike, as well as consumer names like Campbell Soup, Dollar General and Ulta Beauty. Week Ahead Calendar All times ET. Monday, August 26, 8:30 a.m. Standing Orders (July) 10:30am Dallas Fed Index (August) Tuesday, August 27 9 am. FHFA Home Price Index (June) 9 am S & P/Case-Shiller Home Price Indices (June ) 10 a.m. Consumer Confidence (August) 10am Richmond Fed Index (August) Wednesday, August 28 No notable economic data. Earnings: Nvidia , Bath & Body Works , JM Smucker , Salesforce , CrowdStrike , NetApp , HP Thursday, August 29 8:30 am Continuing Jobless Claims (08/17) 8:30 am Second Prelims Prelims (30am) 8am Claims (08/24) 8:30 am Preliminary Wholesale Stocks (July) 10am pending Home Sales Index (July) Earnings: Campbell Soup , Best Buy , Dollar General , Autodesk , Ulta Beauty , Lululemon Athletica Aug 03 am PCE Deflator (July) 8:30 AM Personal Consumption Expenditure (July) 8:30 am Personal Income (July) 9:45 am Chicago PMI (August) 10am
